Rewe Group is converting its ailing Penny discount chain to a new concept, akin to a supermarket with more brands, fewer non-food items and new management. Sales at converted stores have risen 10% to 20%. So far, 250 of about 2,400 Penny stores have been refurbished.

At its supermarkets, Rewe plans to focus more on quality and freshness.

It also plans to open about 100 shops of its Temma organic food and neighbourhood store, deli and bistro.